Is Your Auto Insurance Agent Ripping You Off?

Is Your Auto Insurance Agent Ripping You Off?

Your insurance agent isn't the bad guy. He's just doing his job! It's up to you to decide how much insurance you really need.

Have you ever noticed how it seems like everything today comes as part of a "special bargain" or a "once in a lifetime opportunity"? It's the oldest sales schtick in the book. It's the same selling technique that peddlers used to use to sell their magical herbs and potions. So why are today's salespeople still using it? Because it works.

The question then becomes, not should you buy an auto insurance policy, but how much of what your auto insurance agent is selling you do you really need?

Let's face it, your auto insurance agent is going to sell you anything they think you'll buy. It's their job. It's why they work in the "sales" department. If they think they can talk you into upgrading your policy, they'll do it. If they think they can convince you to add a few extra "perks" for a "low monthly rate" that will raise your premiums, they're going to do it. It's up to you to figure out how much auto insurance you really need.

Liability

Every state has a minimum level of liability auto insurance that drivers are required to have; however, the bare minimum usually isn't enough to keep you protected if you're involved in a four car pileup on I-95 in the middle of a thunderstorm. (If you've ever seen I-95 you know that's not hard to do!) Your mother always told you that you should try to do better than the minimum, and that applies to your auto insurance too.

Experts recommend that you carry at least $100,000 to $500,000 in liability coverage to make sure you're not left holding the bills for:

a) The other driver's medical expenses.

b) Medical expenses for their passengers (and yours).

c) Repairs to their vehicle(s).

d) Damage to any houses, guard rails, telephone poles, garden beds, fences, gates, walls, windows or any other public or private property that didn't have the sense to stay out of your way.

With emergency room bills starting at $1,000 a visit (and that's before the doctor recommends every test, picture and procedure under the sun) and the average cost of car repairs starting at $2,200 after a collision and climbing, you want to make sure you're protected. With at least $100,000 in coverage you know you're covered-even if you end up test driving your car down the aisles of your local WalMart.

Comprehensive

Comprehensive coverage isn't a requirement if you own your car (although your lender will usually force you to have it if you're leasing or you still share joint custody with the bank); however, unless you're driving a car that you can replace for less than $100 you're probably going to want comprehensive coverage up to and including the cost of your vehicle. That way you won't be left holding a bill for a car you can't drive after it's:

1) Destroyed in a fire.

2) Stolen.

3) Vandalized.

4) Caught up in an act of God.

5) Front stage at a body surfing event hosted by your local wildlife.

There's no way to predict what's going to step in and take a swing at your car. This way you can expect to be protected against the unexpected.

Collision

Accidents happen, but if you're the one who caused it, even if it wasn't really your own fault (that spitwad came out of nowhere!), you're going to be the one holding the bag for your own car repairs. Your liability isn't going to cover it. That's why you want to have collision auto insurance coverage up to and including the cost of your car-so you're never left without a set of wheels because of a second's inattention.

That's it! That's all the insurance coverage you really need. Everything else is just fluff on the side, and it's up to you to decide if you're going to make your auto insurance agent happy or if it's just not worth it.

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• Is Your Auto Insurance Agent Ripping You Off? - Apr 8, 2009 - 11:57:10 AM